March 20th, 2014
March 20, 2014; 9:40am
Interest rate trends: Today – Higher; 10 days – Flat; 25 days – Flat
Interest rate recommendation: Locking bias
Mortgage bonds (MBS’s) are slightly worse this morning after yesterday’s selloff. Yesterday’s Fed announcement sent stocks and bonds retreating, Ms. Yellens comments that QE3 could be finished by Fall and the Fed short term rates could rise within 6 months after that is the culprit for the increased interest rates today. With this said, the trend will be higher for interest rates for the remaining year, unless the economy can’t handle the higher rates. Existing Home sales decreased by 0.4% from January to February, but the Philly Fed rises to 9.0 from -6.3 in February. Technically there is reason for some profit taking after yesterday’s sell off, but the trend is for rates to inch higher. Locking is our recommendation. Have a great day!